Threats to the environment, dwindling oil supplies and global competition will demand major changes in society. This applies particularly in the transport sector, which is crucial to the competitiveness of the EU.We must therefore make intelligent decisions as to how to develop and enhance our transport systems. These decisions will require courage and a long-term vision.
The topic of transport is always current, since it is something we all need. Transport forms a complex matrix of needs and interests. Everything from people’s need to live in one place and work in another, to conducting large-scale production and supplying large areas with goods and necessities.
The transport sector is a key industry within the EU. It represents annual sales of €1,000bn, corresponding to one-tenth of the GDP of the Union. It generates more than 10m jobs.
Given its vast scope, it is not surprising that transport is often associated with problems. Trucks, buses, ships and aircraft cause noise, congestion and accidents. They contribute to the greenhouse effect.
We can ignore neither the needs nor the problems. We must deal with both aspects and we need a long-term plan about how to develop sustainable and efficient transport. This is essential to the future competitiveness of the EU.
The Volvo Group has extensive experience of how transport systems work. Not just because we are one of the largest manufacturers of heavy vehicles, but also because we are highly dependent on transport. We need it to maintain competitive manufacturing and distribution.
Like many others, we have found that existing transport systems cannot meet today’s requirements. It is a serious problem, considering that the need for transport is growing – as production becomes increasingly dependent upon just-intime deliveries, as new member states are integrated with the EU and as global trade increases.
Decisions will be required on several levels to meet this growing need.
Overall decisions must be taken at the EU level, particularly where long-term planning and major investments in infrastructure are required. This applies particularly to heavy road shipments that stand still in traffic queues, to Europe’s inefficient and fragmented railway system and to harbors that have reached their capacity ceiling. Within the foreseeable future, we must also make the transition from fossil fuels to other alternatives, which will require new distribution systems for different types of fuels and, consequently, major investments.
One effective improvement would be to facilitate a systematic approach involving different types of transport. In this way, they could form parts of the same transport chain. This would make the entire transport system more efficient and reduce environmental impact.
The key is to stop focusing on each individual form of transport and focus instead on a totality in which each form of transport plays its own important role and complements the rest. That is not what is happening today. Currently, different forms of transport are considered to be in competition with each other. In purely economic terms, we lose, while simultaneously missing out on considerable potential environmental gains.
The EU needs to fully endorse such a fundamental view and support investments that promote it. At the same time, it must also move to change attitudes in the member states, since many of the decisions must be made on the national level. A European transport system requires the understanding and cooperation between the member states.
However, there are measures that can be rapidly implemented to improve and streamline existing infrastructure.
An effective but relatively simple measure, that would not require major investments, would be to introduce what we call a European Modular System (EMS). This system is based on increasing maximum permissible vehicle length to 25 meters on selected highways. This means three shorter transport trucks can be replaced with two longer ones. The number of trucks decreases while the volume of goods remains the same. Studies show that EMS makes it possible to reduce the number of shipments by a full 33% and emissions by slightly more than 30%.
Another relatively simple solution would be to enhance collective traffic by means of Bus Rapid Transport Systems, which have gained a strong foothold in South America as a result of their flexibility, cost-efficiency and increased safety.
Described simply, a Bus Rapid Transport System is based on exclusive bus lanes, efficient terminals, high schedule frequency, modern information systems and advance ticket purchasing.
The great advantage of the system over a subway is the considerably lower investment cost and the possibility of adapting routes as the city develops, at relatively low cost.
A Bus Rapid Transport System is an efficient and highly attractive alternative for cities that cannot or choose not to afford the cost of building a subway – or need to supplement an existing subway.
Since the buses return to the same place after completing their route, they can readily be run on local alternatives to fossil fuels.
It should go without saying that I have enormous respect for the difficulties involved in introducing a systematic approach to the European transport sector. I am personally convinced, however, that it is absolutely necessary to do so. We cannot afford to wait any longer, neither from the point of view of the EU’s competitiveness nor that of the environment.
We at Volvo, whose primary market is Europe and whose experience is global, would look forward to actively participating in the development of Europe’s future transport system, in cooperation with the industry, legislators, the scientific community and other stakeholders concerned.
Leif Johansson
Chief Executive Officer of the Volvo Group
